Opposing groups join forces on Ohio energy plan

Thursday

Sep 27, 2007 at 12:01 AMSep 27, 2007 at 6:24 AM

Now the governor needs to convince utilities and lawmakers to get on board. That may not be so easy.

Paul E. Kostyu

Ohio manufacturers and the Ohio AFL-CIO -- two groups usually on opposite sides of issues -- joined Gov. Ted Strickland on Wednesday to back the governor’s plan to regulate electric utilities and promote renewable energy sources.

Now the governor needs to convince utilities and lawmakers to get on board.

That may not be so easy.

While Strickland and the two groups were pledging to work together to prevent dramatic increases in electric rates on Jan. 1, 2009, across the street, the Ohio Senate began hearings on what could be a battle over the details of the proposal. The electric industry is expected to weigh in next week and it will use some of the most powerful lobbyists in Columbus to make sure its message is heard by legislators.

Strickland’s proposal, Senate Bill 221, also has the backing of the Ohio Farm Bureau Federation’s board of trustees.

“There is little argument that energy is going to cost more over the long term,” said John C. Fisher, the federation’s executive vice president. “That means we have to find solutions that make those costs more predictable, stable and manageable. The governor’s plan puts us in position to do that.”

State Rep. John Hagan, R-Marlboro Township, is not sure the plan is good enough, yet. Hagan, who attended the packed Senate hearing, chairs the House Public Utilities Committee, which may get the measure after the Senate is done with it.

“There were good questions and a lot went unanswered,” Hagan said. “Those gaps will have to be filled.”

Hagan said he is concerned about the costs of the plan and whether those costs will be transferred to consumers. He called some of the comments by Mark R. Shanahan, the governor’s energy adviser and the only witness Wednesday, elusive on that issue.

Mark Weaver, a spokesman for electric utilities, said Ohio was not in danger of price spikes, which happened in other states, because the current system allows for a gradual increase as the state moves to market-driven pricing. He said the utilities are concerned that high users of electricity will negotiate a price subsidized by small businesses and individual consumers.

Weaver also said he is worried lawmakers will move too quickly on SB 221.

Strickland and some legislators have said they think the measure can be enacted by the end of the year.

Strickland has met with relevant stakeholders, including the chief executive officers of Ohio’s utility companies.

“We want to make sure Ohio has an adequate supply of electricity,” he said. “We want to encourage updating and modernizing of the transmission system, make sure individual consumers are protected from inappropriate and unnecessary price spikes, make sure jobs in Ohio are protected and industrial users are competitive.”

“Some issues are too important to let our differences divide us, and electricity is one of those issues,” said Eric Burkland, president of the Ohio Manufacturers’ Association.

Joseph P. Rugola, president of the Ohio AFL-CIO, told Strickland, “In my judgment, only you could have brought these parties together around this question.”

He said the union is committed to the partnership with manufacturers and to helping pass the legislation.